Retirement and Estate Planning

You think college tuition is expensive?  How about paying for 25 to 30 years of retirement?  The idea can be frightening.  So frightening, in fact, that many people prefer not to think about it at all, or simply throw their hands up in despair and do nothing.  Avoiding the problem is not the answer, however.  Planning is the answer. Proper planning can help remove some of the uncertainty that causes fear and stress. Planning helps answer the questions so many people ask when discussing retirement:

How much will I need to save? Probably more than you think. In today’s post-pension planning environment, very few people are saving enough for retirement. I will help you develop a savings and investment plan that will give you the best chance of success, and work to remove whatever obstacles may prevent you from achieving that success.

Will I have enough money to maintain my lifestyle? You have worked hard your whole life.  You should be able to actually enjoy the independence you have earned. It would be a shame to finally retire, only to discover you can’t afford to live the life you’ve dreamed about.

Will I have enough money to travel? Many recent retirees are so nervous about their financial situation, that they find it difficult to spend money pursuing their dreams. A good financial plan can help provide reassurance. If your spending plan allows for travel, then go have fun!

What if I don’t want to retire? Many people will say they don’t need to plan because they expect to continue working in retirement. While we think employment during your golden years is a good thing, it is foolish to think that you will be able to continue working into your 70’s and 80’s at the same pace you did in your 30’s and 40s.  Your health will eventually fail, and the appeal of work will diminish with age. So even if think you will work forever – you still need to plan for a future with diminished income.

What if I outlive my money? This is everyone’s biggest worry about retirement. This is addressed by carefully planning out cash flows throughout your golden years, and keeping sufficient assets in reserve, just in case things don’t always go as planned.

How will I create income from my assets? You save your whole life, you’ve paid off your mortgage, now you are ready to retire. How do you convert all your hard earned assets and savings into income to replace your paycheck? And how do you structure distributions so that you do not spend your nest egg too quickly? A financial plan helps retiring clients shift gears from accumulating assets to spending assets. (Be careful about “advisors” who rely too heavily on annuity products for retirement income. Annuities may play a role in providing lifelong retirement income for some people, but they are no substitute for an objective, independent financial plan!)

What will happen to my assets when I die?   One area of focus is to look for potential estate planning pitfalls, helping make sure that your assets are distributed according to your wishes, without excessive taxation.

What if I want to give some money to my children (grandchildren)? There are many tax and non-tax considerations when gifting money to family members or charity. One of my goals is to help you make your gifts achieve the greatest benefit with least cost to both donor and donee.

What if my spouse or I need long term care? How will we pay? Very few people spend much time thinking about long term care until it is too late. Medicare does not pay for long term care. Planning for the possibility of long term care should take place well before retirement age.

There are certainly more questions about retirement than there is space to list. Call for a no-obligation consultation to start planning ahead for your own financial independence.

(It should be duly noted that I am not an attorney or a CPA, so advice offered should not be contrued to be legal advice or tax advice.  Clients are encouraged to consult with an attorny for legal advice and an accountant/CPA for tax advice.  I can refer clients to reputable professionals in these disciplines upon request.)